Frequently Asked Questions

Questions and answers:   What does the term "fiduciary relationship" mean in connection with the trust?     Like   many   other   expressions,   this   term   comes   from   the   Anglo-Saxon   law   (common   law).   The   translation   means      'The   full   form   of   foreign   property   management'   and   is established   between   the   founder   of   the   trust   (so   called   Settlor)   and   so   called   Trustee   ,   who   is   a   holder   of   the   trust   and         manages   the   assets   of   a   trust   for   the   benefit   of   a third    person    (so    called    Beneficiary),    who        is    entitled    to    the    benefits    of    the    property    .    This    relation    always    requires    contractual    trust    agreement,    Treaty    for    the management   of   foreign   assets.   Certainly,   this   is   just   a   general   interpretation,   because   the   fiduciary   relationship   may   have   many   other   forms,   and   also   in   the   context   of trusts   the   fiduciary   relationship   varies   in   individual   legal   systems,   in   which   this   form   is   used.      Interesting   is   the   fact   that   the   legal   institution   of   trust   is   been   gradually getting into the continental legal system, for example, in the new Civil Code of the Czech Republic it can be found under the title“ svěřenský fond“.     What does it mean “Virtual office” and what does this service include?     We   provide   this   service   from   September   2014.         We   will   provide   a   “virtual   office”   for   your   foreign   company   in   the   country   of   registration.         This   office   outwardly appears   to   be   'real',   with   all   the   advantages   and   conveniences   of   a   real   one.      Within   this   service   we   will   provide   you   with   phone   and   fax   numbers   in   a   given   city,   which   will belong   exclusively   to   your   company.         We   will   credit   you   with   our   Slovak-speaking   staff,   which   will   operate   these   lines,   and   at   the   same   time   staff   will   handle   your corporate   agenda,   forwarding   mails   to   you,   etc.         If   necessary,   on   behalf   of   your   company's   name   we   will   register   an   Internet   domain,   arranging   the   hosting   on   your website   and   e-mail   addresses.         This   service   is   essential   for   those   entrepreneurs,   who   would,   in   some   cases,   doubted   be   by   financial   authorities   for   the   place   of performance   –   e.   g.   the   provision   of   services.            This   service   is   financially   much   more   favourable   than   renting   a   private   office   in   the   country,   including   its   furnishing,        equipment and hiring staff.   The service is available only for those companies, which we provide with a registered seat.   What shall I look out for when buying a company? What are the risks of purchasing an unknown company?  Buying an unknown company: Recently,   we   have   often   came   across   cases      where   the   customer   „buys“   an   elder,      well-functioning   -unknown   company   that   is   declared   as   a   'totally   clean'   and   later   there will   be   raising   issues   from   the   past,   such   as   unpaid   invoices,   contractual   liabilities   or   no   dispatched      returns   and   unpaid   taxes.         In   the   event   that   you   are   going   to   buy   a company   that   carried   out   economic   activity   in   the   past   and   you   are   not   aware   of   its   business   and   financial   history   ,   it   is   important   to   have   the   screening   process performed,   so   called   'Due   diligence'   (see   below)   of   that   company.      Under   the   authority   for   such   an   audit   -   we   are   able   to   perform   it.      Certainly,   even   on   the   basis   of   the screening,   it   is   not   possible   to   declare   that   the   company   is   'absolutely   clean',   but   the   detailed   screening   significantly   reduces   the   risk   involved   in   purchasing   of   such   a company.   What are the off-she companies? What do the terms off-shore business and off-shore company mean?   Off-shore companies: In   the   public   eye,   off-shore   companies   are   often   seen   very   negatively,   as   some   mystical,   intangible   companies,   which   were   based   on   tax   frauds.         Such   a   negative   image is   a   contribution   of   the   media   as   well,   however,   the   fact   is   that   all   of   the   companies,   which   do   not   perform   any   economic   activity   in   the   country   of   registration,   are   called off-shore   companies,   therefore   we   can   deduce   that   the   off-shore   company   can   be   either   'on-shore'   company   which   does   not   carry   out   an   economic   activity   in   their   own country, but only abroad. Some countries, such as Cyprus is tend to be remembered as a mid-shore countries. Possibly   the   earliest   concept   of   off-shore   companies   developed   in   ancient   Greece.            Greek   merchants   escaping   from   uncompromising   tax   collector   from   Athens   used   the proximity   of   independent   Aegean   Islands,   where   they   could   offer   their   products   to   Athens´   habitants.         Establishment   of   modern   off-shore   companies,   however,   is closely   related   to   the   England   and   the   Anglo-Saxon   law-   common   law   that   was   implemented   in   the   legal   systems   of   all   the   British   colonies,   forming   the   basis   for   the formation of offshore companies, mainly in the former colonies and adjacent areas such as the Isle of Man, British Virgin Islands. Business   activities   of   the   off-shore   companies   does   not   differ   at   all   from   enterprising   of   the   on-shore   companies,   they   are   based   on   Memorandum   of   Association   or Deed   of   foundation   ,   where      business   objects   are   defined      as   well   as   other   terms   and   conditions.         The   only   difference   is   that   in   the   country   of   establishment   there   are much   more   favourable   conditions   for   taxing   entities,   accounting   and   use   of   the   generated   profit.      Some   countries   do   not   require   bookkeeping   at   all,   thus   save considerable   costs   of   these   services.         Also,   in   most   countries   there   is   paid   a   fixed   annual   tax,   so   the   administration   of   the   company   is   a   zero,   actually.         Off-shore companies   and   trusts   are   designed   primarily   to   protect   property   and   ownership   and   to   preserve   the   confidentiality,   for   both   natural   and   legal   entities   and   when   these are used wisely, it can mean considerable saving on taxes, with no serious conflicts with the financial administration of the country.     What is an off-shore bank account? What services are provided by off-shore banks?   Off-shore banks and off-shore bank accounts: Off-shore   bank´s   business   is   mostly   identical   to   the   '   normal   '   on-shore   bank´s   business,   the   difference   is   that   they   are   based   in   the   off-shore   country   using   the   more favourable   taxation   (tax   mitigation).      Banks   are   governed   by   internal   rules   as   well   as   the   legislation   of   the   country   of   residence,   and   they   are   controlled   by   the   relevant financial   supervision   authorities   of   that   country.         These   banks   provide   the   usual   banking   services,   for   example   opening   an   account   for   individuals   as   well   as   for   business companies,   available   in   every   country   in   the   world.         Furthermore,   they   offer   transfers   within   client´s   accounts,   transfers   within   the   Bank,   as   well   as   international transactions   within   the   SWIFT.         Some   banks   also   issue   credit   cards   that   also   support   payments   via   the   Internet,   as   well   as   withdrawing   cash   from   an   ATM   available   in every country. However,   such   a   bank   should   be   selected   with   due   care.         In   choosing   it   is   necessary   to   consider   the   possible   risks,   as   well   as   the   price   of   services.         The   best   way   is   to accept   advice   from   a   person   who   is   able   to   provide   references   for   the   Bank,   also   able   to   check   which   company   shall   carry   out   a   financial   audit   and   supervision   of   the Bank above.   The history of the Bank has a great 'explanatory power'.   What does the term due diligence mean? The site is emerging, the term 'due diligence', what does it mean in connection with any person, Bank or company? Due diligence: The   term   comes   from   the   American   legal   system;   it   is   commonly   practice   among   American   businessmen.         It   actually   means   due   caution   against   a   partner,   with   the necessary   prudence   particularly   in   the   preparation   and   conclusion   of   commercial   contracts,   but   also   in   other   matters,   such   as   tax,   financial,   legal,   etc.   due   diligence   of the   company.            In   case   of   companies   this   means   a   global   audit   of   their   activities,   trade   relations   and   especially   their   financial   discipline.         In   the   relationship   between   the Bank   and   the   client   it   shall   mean   personal   due   diligence,   it   means   sufficient   identification   for   qualified   access   to   the   business   relation   -   opening   an   account.         For   client authentication   is   in   most   cases   required   to   submit   at   least   two   different   types   of   personal   documents,   bank   references,   event.   abstracts   of   accounts,      sometimes   the commercial purpose, identification of business partners, CV, etc. 
Copyright © 2013 - 2017 CMC (UK) Ltd.  All rights reserved.
UK Mirror Site EU Mirror Site
LEGAL DISCLAIMER Our   website   includes   articles   concerned   with   tax   system   analysis   of   some   countries,   comparison   of   business   environment   and   in some   cases   articles   may   allocate   advantages   of   legal   international   tax   planning   of   legal   as   well   as   physical   entities.   These   articles are   not   published   with   the   intention   to   induce   the   reader   to   avoid   legislative   norms,   especially   tax   regulations   of   individual countries   of   the   European   Community   or   third   countries.   We   are   trying   to   provide   complex   and   accurate   information,   on   the   other hand,   we   refuse   any   legal   responsibility   for   the   statements   and   stand-points   published   in   various   articles   of   this   presentation.   The content   of   articles   is   not   intended   and   shall   not   be   considered   in   any   way   as   tax   advisory   nor   as   a   relevant   statement   regarding   tax issues and legal matters.
CONTACT US: Cyprus (Larnaca):  +357 24022485 info (at) companymaster.eu  Slovakia (Bratislava): +421 944449494 info (at) companymaster.eu Hungary (Budapest): +36 302928601 info (at) companymaster.eu